Sessions 9/10/12- Organization Structure & Design Flashcards
Organisational Structure
How authority in the org delegates work and tasks to members of an org in order to for them to coordinate their actions and use resources for them to achieve the org’s goals
Organisational Design
Process by which managers organise the org’s structure and culture in order for the org’s activities to be controlled and reach its goals
Traditional org structure drawbacks
Command-and-control Slow adaption to changes Hinders innovation High coordination costs Does not draw all necessary information
Org design & change
the process by which orgs move from their present state to some desired future state to increase their effectiveness
Consequences of poor organisational design
Decline of the org
Talented employees leave the org in order to pursue a better opportunity elsewhere
Resources become harder to acquire
Resulting crisis compels managers to change the org structure and culture
Measuring Organisational effectiveness
Managers measure org effectiveness through:
Control: external resource approach
Innovation: internal resource approach
Efficiency: technical approach
Basic org design challenges
Differentiation: process by which an org allocates people and resources to organisational tasks. establishes tasks and authority necessary for an org to achieve its goals
Division of labor: the degree of specialisation in an organisation.
Simple org=low division
Complex org= high division
Organisational Roles
set of task-related behaviours required of a person by his/her position in an org
authority: the power to hold people accountable for their actions and to make decisions
control: the ability to coordinate and motivate people in the organisation’s interests